Solana News Today: Solana (SOL) Clings to $120 as Institutional Inflows Battle Bearish Momentum

Solana (SOL) Price Analysis: Institutional Adoption and Technical Challenges

Solana (SOL) is facing renewed pressure near $120, with traders closely watching whether the cryptocurrency can hold this key support level amid broader market uncertainty. Institutional adoption is gaining ground, particularly in Brazil, where Valour's Solana ETP is now listed on B3, offering regulated access to Latin American investors. Despite this development, price volatility remains high, and liquidity clusters around $123 pose a risk of sharp sell-offs if the level breaks (https://crypto.news/solana-price-compresses-triangle-apex-breakout-risk-builds/). Analysts are also tracking Bitcoin's performance, noting that continued weakness could trigger a deeper correction in Solana.

Daily inflows into Solana spot ETFs have reached $3.64 million, signaling sustained institutional interest in the asset. Total assets under management now exceed $926 million. At the same time, exchange-held supply of SOL tokens is declining, suggesting accumulation by long-term holders. This trend is viewed by some as a sign of growing confidence in Solana's ecosystem, even as price remains range-bound.

Technical indicators suggest a fragile balance between buyers and sellers. The RSI is below 50, indicating subdued demand, while MACD remains compressed, signaling a lack of clear bullish momentum. On the 4-hour chart, Solana is forming a tight range between $122 and $145, with repeated tests of the $122 support line weakening its reliability (https://crypto.news/solana-price-compresses-triangle-apex-breakout-risk-builds/). Analysts warn that a breakdown below this level could trigger a cascade of liquidations toward the $100 level (https://bitcoinist.com/solana-faces-critical-test-near-100-macro-pressure/).

Why the Standoff Happened

The standoff at $120 reflects conflicting forces in the market. On one side, institutional adoption and ETF inflows are creating new avenues for capital to flow into Solana, particularly in Brazil, where over 10 million crypto users exist. Valour's listing of a Solana ETP on B3 is a key milestone for regulated access in the region, potentially boosting both liquidity and legitimacy for the asset. On the other side, Bitcoin's continued weakness and broader macroeconomic uncertainty have limited the ability of altcoins like Solana to break out of consolidation ranges.

Market structure analysis also points to a buildup of bearish momentum. Solana has been forming lower highs within a descending trendline, indicating that sellers remain in control of short-term price direction. This pattern is reinforced by a compressed RSI and weak volume, suggesting traders are hesitant to commit large capital to either side of the market.

How Markets Reacted

The recent price action has triggered a mix of cautious optimism and bearish concern. While Solana has defended key support levels like $124 and $125, these efforts have lacked strong follow-through, with rebounds often failing to break above $130 (https://www.fxleaders.com/news/2025/12/17/solana-holds-128-despite-mixed-signals-as-valour-launches-brazilian-etp-and-network-survives-major-ddos-attack/). Traders are watching for a decisive breakout above $145, which would signal a potential recovery and invalidate bearish patterns. Conversely, a clean break below $125 could extend the downward trend toward $100.

Institutional flows, however, are counterbalancing some of the near-term weakness. The reduced exchange supply of SOL tokens points to accumulation, with holders moving assets into secure wallets. This behavior aligns with previous cycles in high-throughput blockchains like Solana, where institutional entry has preceded retail-driven rallies. Analysts suggest that sustained inflows into ETFs could eventually stabilize the price and provide a foundation for a rebound.

What Analysts Are Watching

Experts are focusing on a few key levels as potential inflection points for Solana. The $120–$125 zone is seen as a critical support area, with further weakness below this range exposing the market to a test of $100. On the upside, a sustained move above $145 would flip the narrative, signaling renewed buying interest and reducing bearish bias. The 4-hour chart shows that the asset is still bound by a descending resistance line, which has repeatedly capped gains (https://www.mexc.co/news/284528).

Technical indicators remain mixed, with the RSI at 37.38 and MACD below zero, suggesting bearish control. However, some analysts argue that the accumulation evident in on-chain data could eventually drive a bullish breakout, particularly if Bitcoin stabilizes and broader crypto sentiment improves. The Chaikin Money Flow indicator currently shows outflows, but a reversal above zero could signal renewed investor interest (https://www.mexc.com/en-NG/news/279709).

Risks to the Outlook

Despite the positive developments in institutional access, Solana's price remains vulnerable to broader macroeconomic shifts. Bitcoin's performance continues to influence the altcoin market, and a deeper correction in the leading cryptocurrency could exacerbate selling pressure on Solana. A breakdown below $100 would likely trigger further panic, especially with thin liquidity at this level (https://bitcoinist.com/solana-faces-critical-test-near-100-macro-pressure/). At the same time, rising U.S. unemployment and mixed signals from the Federal Reserve on interest rates have limited risk appetite across asset classes.

On the flip side, Solana's network resilience has shown strength, with recent DDoS attacks failing to disrupt its transaction speed. The blockchain's capacity for up to 65,000 transactions per second at low costs continues to attract developers and DeFi projects. While this does not directly impact near-term price, it reinforces long-term confidence in the ecosystem.

What This Means for Investors

For investors, the current Solana scenario presents both risks and opportunities. A break below $120 would signal a bearish continuation, with potential for deeper losses toward $100 and beyond. Positioning for this scenario would involve hedging against further declines or waiting for clearer signs of stabilization. Conversely, a breakout above $145 could invalidate bearish formations and set the stage for a rally toward $170–$200, depending on how quickly institutional buying accelerates. Retail investors are also advised to monitor key support and resistance levels, particularly $125, $130, and $145. These levels will determine the near-term direction of the market and provide insight into whether accumulation is building into a potential reversal. With the broader market environment uncertain, staying informed about ETF flows, institutional activity, and technical breakouts will be key to navigating Solana's next move.